Investing blindly in a mutual fund might not generate the desired results. This is validated by the difference in the performance of the top equity funds and the category as a whole. In the past three years, the top five equity diversified funds have earned, on an average, an annual return of 18.5%, whereas the category average is only 6.8%.
Both debt- and equity-oriented balanced funds have earned positive returns as opposed to equity diversified and tax planning funds, which have lost money in the past year. The relatively smaller fund, Sahara Classic, has almost matched the returns of the top performing equity balanced fund.
The Takeaways:
